Daily Market Analysis from ForexMart

[Luis ForexMart]

EUR/GBP Technical Analysis: February 16, 2017

The Euro against the British pounds surged on Wednesday’s trading session but failed to break higher than the 0.85 mark which is quite a strong Resistance level. Hence, it may not be advisable to trade this market giving quite a negative outlook in trading compared to other currencies. It might be wise to stay on the sidelines this time. On a brighter note, a resistive candle formed could halt the selling opportunity in the market which chances to go down towards the 0.83 handle.

[Luis ForexMart]

AUD/USD Technical Analysis: February 16, 2017

The Australian dollar against the U.S. dollar declined on Wednesday's trading session but was able to recover after a break out reaching a new high. It broke higher than the 0.7695 Resistance level and proceed with the upward momentum after lows at 0.7159 level. It is expected for the price to go higher in the next trading sessions towards the next target at 0.7800 zone. The key support is found at 0.7605 level and a break lower than the said level would complete the uptrend of the pair.

The market could try to move towards the 0.7750 level that is found to be a resistance level for the long-term charts. Short term reversals are eminent to be become buying opportunities to be forward implying a purchase after decline may not be favorable for short-term charts. Most likely, the 0.76 level will continue to be a strong psychological level in the market.

[Luis ForexMart]

USD/CAD Technical Analysis: February 16, 2017

The USDCAD is in the red in spite of the renewed buying interest in the US dollar following the statements made by Janet Yellen. The predictions about the rate hike in March stimulated the market sentiment. According to the Fed Chair, the hike will implement sooner in order to tighten monetary policy. Jeffrey Lacker, President of Fed Reserve Bank, suggested that the Chairwoman have the power to carry out 3 rate increases in 2017.

The price preserved a bearish sentiment on Wednesday. The bullishness of the greenbacks was short-lived making the pair to loosened their grip into their recent gains. The USDCAD trade in a narrow range amid European hours and hovered on top of range-bound.

According to the 4-hour chart, the price tested the 50 and 100-EMAs. Moreover, the 50-EMA exhibited an upward crossover to the 100-EMA. The 100 and 200-EMAs moved southwards while 50-EMA headed upwards. Resistance is found at 1.3120, support is seen at 1.3050

The MACD is bearish sitting in the negative zone. The RSI settled around the neutral territory.

Furthermore, the bullish pressure is expected to revive. As the commodity-linked pair reaches the top of 1.3120 resistance region, we expect to see an uptrend. The next target is 1.3190 mark.

[Luis ForexMart]

GBP/USD Technical Analysis: February 16, 2017

The British currency had refreshed its lows following the mixed data of employment. The jobless rate in the UK remained steady for the month of December while the measure for Claimant Count Change is lower than the said forecast. The GBPUSD further hovered in the selling pressure on the back of Yellen’s comments on Tuesday.

A short period of consolidation concluded in the early trade of EU. The sterling met a downside pressure stimulating its declivity. The price reached 1.2400 level on the back of the London session. The cable is confined under the 100 and 50-EMAs indicated in the 4-hour chart, the two further moved southbound while the 200-EMAs directed up. Resistance is seen at 1.2500, support stayed at 1.2400.

MACD indicator grew less which confirmed a sell signal. The RSI hovered in the oversold area after leaving the neutral zone. The bearish sentiment dominated the market on Wednesday. A close below the support region 1.2400 would cause the major to resume its decline towards 1.2300.

[Luis ForexMart]

EUR/USD Technical Analysis: February 16, 2017

The US dollar stays close on its renewed highs versus other major pairs. The hawkish remarks made by J. Yellen provided support for the greens regarding the possible rate increase in March. The consumer price index in Spain came in lower than expected and weighed against the euro.

Having touched the 1.0550 level, the EUR rebounded and reversed few of its losses. The recovery took overnight tried to slowed down below 1.0600 hurdle. The EURUSD were kept in the pressured area, en route negative zone during the post-Asian hours. Sellers moved the price downwards and tested the 1.0550 region amid EU session. The pair resumed its development under the moving averages as shown in the 4-hour chart.

The 100 and 50-EMAs preserved its bearish sentiment while the 200-EMA headed upwards as indicated in the same timeframe. Resistance touched 1.0600, support hit 1.0550.

MACD histogram appeared to be bearish and settled in the negative zone. RSI favored another downtrend staying in the oversold territory.

The price continued to remain bearish according to the 4-hour chart. A clear break below the range of 1.0550 will further decline to 1.0500 mark.

[Luis ForexMart]

USD/CAD Fundamental Analysis: February 16, 2017

The USD/CAD pair continues to be subject to tremendous pressure, with the currency bulls doing their best to maintain their hold on the USD/CAD pair. The currency pair has been consistently on the brink of breaking through its critical support barrier for over weeks now, and forecasts have been saying that any breakthrough in this region would result to a major trend change for the currency pair.

The US released a string of important economic data yesterday which has significantly affected the value of the USD and injected volatility into the market. Both the CPI data and the retail sales data from the country were able to exceed market expectations, but then these positive data were overshadowed by a dismal wage data, and this caused the USD/CAD pair to temporarily break through 1.3100 points. However, as the market began to feel the effects of a weak wages data, a massive selloff in the USD started to occur and this put downward pressure on the USD/CAD, pushing it way below 1.3100. The currency pair is now trading just over its critical support barrier of 1.3060 points.

There are no major economic data scheduled to come out from both the US and Canada except for the unemployment claims data from the US. The USD/CAD pair is expected to remain within a limited range of 1.3000-1.3100 points.

[Luis ForexMart]

GBP/USD Fundamental Analysis: February 16, 2017

The GBP/USD pair has managed to regain all of its previous losses and was able to keep itself afloat as the US dollar weakened in value during yesterday’s trading sessions. The sterling pound continues to be the strongest currency as of the moment as it manages to weather the adverse effects of the USD’s activity, with a strong support barrier at 1.2400 points. The GBP has also managed to revert back all of its losses to trade at just over 1.2450 points as of the moment.

Both the UK and the US released a string of economic data yesterday. For the UK, the country’s average earnings data came in at a somewhat disappointing reading of 2.6%, but fortunately the effect of this reading was offset by a highly positive claimant count change data reading, which helped in dampening the adverse effects of the weaker data. The US retail sales data and CPI data also exceeded market expectations, and this, along with the dollar strength, caused the GBP/USD pair to drop down to 1.2400 for a short period. However, this period of slump in the currency pair was only short-lived as the strength of the USD began losing its momentum after the market finally noticed the pronounced weakness in the wages data of the US, which then helped the GBP/USD pair to get back on its feet.

There are no major news data coming from the UK for today but the US will be releasing its Manufacturing Index data and unemployment claims data, and the GBP/USD pair is expected to merely continue its ranging and consolidation for today due to the lack of possible game-changers in the currency pair.

[Luis ForexMart]

EUR/USD Fundamental Analysis: February 16, 2017

The USD slid back during the past trading session and went through a massive reversal of its recent gains which it had initially garnered during the start of the week. The EUR/USD pair surged by over 100 pips as a result of this recent reversal and is currently trading just over 1.0600 points, where it looks poised to increase further in value.

Yesterday the market saw the release of a slew of economic data from the US, specifically the CPI data and the retail sales data. In general, these set of data proved to be very good for the US, with the retail sales data coming in with a reading of 0.4%, exceeding market expectations of 0.1%. However, although the CPI data had a very positive reading and has exceeded market expectations as well, the wages data came in at 0.6%, prompting the wage growth year-on-year to come in at 0.0%, which led to the disappointment of the USD’s bulls. This was especially disappointing since the wages factors was the weakest link in the NFP report, and the CPI data reading only affirmed the lackluster wages data. Although the USD increased almost immediately after the EUR/USD dropped down towards 1.0520 points, the currency experienced reversions as the drop in the wages data began to take effect in the market, with the dollar bearing the brunt of this effect.

There are no major news releases coming from the European Union today, but the Philadelphian Manufacturing Index data and the Unemployment Claims data from the US will be released today. These set of data are not expected to induce that much volatility, and the EUR/USD pair would most likely continue its ranging and consolidation with bullish undertones for today.

[Luis ForexMart]

USD/JPY Technical Analysis: February 17, 2017

The U.S. dollar traded against the Japanese yen was under an intense selling pressure resulting to a Bearish sentiment. This was followed by a sudden drop. The traders broke the level at 114.00 during the beginning of the session but reversed by night as the price fell. European traders tried to move the price to decline and reach the 113.50 level during the mid-European session. The Resistance level was seen at 114.00 while the support was positioned at 113.00 mark.

The price was seen to break downward at 200-EMA chart while the price maintained its range both in the 50 and 100-EMA for the day. Particularly, the 50-EMA chart gave a bullish tone while the other two, 100-EMA and 200-EMA, moves downward. As for the MACD, the price decreased implying the weakened stance of buyers. Yet, the RSI entered the Neutral area coming from the Oversold area.

Traders target now the 113.50 mark. If the price stays below the said level, the pair could further go down towards the 113.00 level which will bring back the buyers to dominate the market.

[Luis ForexMart]

USD/CAD Technical Analysis: February 17, 2017

The U.S. dollar against the Canadian dollar dropped during the trading session on Thursday testing towards the 1.30 level. This zone was seen to give a significant support in the past session which seems to happen again. There seems to be a strong resistance level found above the 1.31 level which seems to consolidate within this range. Moreover, the oil market has no clear direction which will also be reflected in the price trend of the pair.

However, if the market is able to break atop the shooting star pattern formed on Wednesday’s trading session, this could further go up towards the 1.32 level. Oppositely, a breakdown lower than the 1.2967 level could shift the direction of the price move downward.